If you follow the Indian market, you track two things each morning: where NIFTY 50 closed yesterday and what the offshore handle is signalling right now. For years that early read used to be “SGX Nifty” out of Singapore. On 3 July 2023, that handle was moved under the NSE IX–SGX GIFT Connect and trades from GIFT City as “GIFT Nifty”.
In simple terms, the pre-open cue you check before 9:15 AM now lives closer to home, with nearly 21 hours of trading across Asia, Europe, and the US.
What is Nifty and SGX Nifty?
NIFTY 50 is India’s flagship equity index on the National Stock Exchange (NSE). SGX Nifty was the offshore futures contract on that index listed in Singapore. It was denominated in USD to let global investors get India exposure.
Today, those contracts are routed to NSE International Exchange (NSE IX) in GIFT City via the NSE IX–SGX GIFT Connect, with SGX continuing to provide access and clearing to its international client base. So you essentially get the same directional signal, just through an India-centric venue and rulebook.
Indian Nifty vs SGX Nifty: Key differences
NIFTY trades on the National Stock Exchange (NSE) in India and is settled in INR during Indian market hours (9:15 AM to 3:30 PM IST). SGX Nifty (now GIFT Nifty) originally ran on the Singapore Exchange (SGX) in USD, but post-migration, the currency for GIFT Nifty trading became INR, despite offshore, nearly 21-hour operation.
Venue, currency, regulatory framework, and session length are the core differences.
- Venue: NSE India for NIFTY, previously SGX for SGX Nifty, now NSE IX GIFT City for GIFT Nifty.
- Currency: INR for NIFTY (and now GIFT Nifty post-migration), USD for SGX Nifty.
- Regulatory: SEBI (Securities and Exchange Board of India) for NIFTY; Monetary Authority of Singapore for SGX Nifty; IFSCA (International Financial Services Centres Authority) for GIFT Nifty.
- Session length: Indian hours for NIFTY; extended hours (16-21 hours) for SGX/GIFT Nifty.
Post-migration, order flow from SGX members routes to NSE IX, enhancing liquidity while preserving global access. That’s why the pre-open market commentary now references GIFT Nifty quotes (prices) from GIFT City instead of the old SGX Nifty quotes from Singapore.
Read Also: What is Nifty: Meaning, Eligibility, Calculation and Benefits
Pros and cons of SGX Nifty
- Pros: You may get a near-continuous global read on India risk, USD settlement that’s convenient for offshore funds, and a live price guide that updates through Asia, Europe, and the US sessions.
- Cons: It’s based on futures, not the actual stock market. Differences in currency and trading hours may cause price mismatches, and in low-volume periods the moves may look bigger than they really are. The Connect system solves the split between offshore and onshore trading by moving all trades to NSE IX, while still letting global investors access it through SGX.
Influence of SGX Nifty on Indian market
Traders watch GIFT Nifty to try and predict the next day’s open, manage gap risk, and hedge overnight positions. It matters most before the 9:15 AM bell, but once markets open, local investor flows and the Nifty 50 itself drives direction. With two long sessions (06:30 – 15:40 IST and 16:35 – 02:45 IST), GIFT Nifty overlaps with U.S. trading, with the late Wall Street moves and the Session II close often setting the tone for India’s next day.
Latest update on SGX Nifty
As of July 3, 2023, SGX Nifty transitioned to GIFT Nifty via the NSE IX–SGX GIFT Connect. Full-scale operations began that day with ~USD 8 billion OI (open interest) in Nifty futures and over USD 1 billion OI in Nifty options moving under the new setup. Since then, traders track GIFT Nifty—not SGX Nifty—as the market’s reference point.
Advantages of SGX Nifty
Through Singapore, investors enjoyed longer trading hours, USD-based settlement, and easy offshore access. Those advantages carry forward through the Connect—orders from SGX members are routed to the NSE IX order book, maintaining a seamless access point for global investors while shifting price discovery to India.
Read Also: What Is Nifty Midcap 150 And How Do You Invest In It?
Disadvantages of SGX Nifty
You dealt with a split ecosystem (offshore vs onshore), sometimes leading to mismatches between futures and the actual cash market. You also had a regulatory disconnect: trading and discovery occurred under Singapore rules while the underlying market and securities was in India. Shifting to GIFT City reduces that disconnect by bringing all trading under one roof with unified rules and smoother operations.
SGX Nifty - Facilitating foreign investments in India
For almost two decades, offshore index futures lowered entry barriers by letting global investors get access to India in USD with familiar clearing. The Connect maintains that benefit and tightens the loop—international orders still come through SGX channels, but matching happens on NSE IX. With nearly 21 hours of trading, overlapping with major time zones, GIFT Nifty is deemed easier to track and more closely aligned with India’s market activity.
FAQs:
What is SGX Nifty?
It was the offshore Nifty 50 futures contract listed on the Singapore Exchange, used worldwide to bet on India’s stock market outside of India’s trading hours. Since July 3, 2023, trading routes via the NSE IX–SGX GIFT Connect and the market now follows GIFT Nifty from GIFT City.
How is SGX Nifty different from Nifty?
NIFTY 50 is India’s main stock index traded in rupees on NSE. SGX Nifty was a futures version traded in Singapore in dollars, with longer hours. Now called GIFT Nifty, traded from GIFT City in India, it is still reachable through SGX.
Can international investors trade in SGX Nifty?
Yes—international investors used SGX to trade. Under the Connect, they still go through SGX, but the trades are matched in India at NSE IX and cleared by SGX. This keeps global access easy while moving the actual trading to GIFT City.
How does SGX Nifty benefit Indian traders?
You may get an early read on risk, a tool for overnight hedging, and a guide to gap openings. Because GIFT Nifty runs nearly 21 hours, by the time India’s market opens at 9:15 AM, you may get a clearer picture of global sentiment instead of mere guesswork.
Why was SGX Nifty moved to GIFT City?
To shift price discovery under India’s trading rules, consolidate liquidity, and build GIFT City as a genuine international hub—without cutting off overseas participation. The Connect was built for this outcome.
When did SGX Nifty become GIFT Nifty?
On July 3, 2023, when the NSE IX–SGX GIFT Connect went fully operational and the market shifted its reference handle.
How does the move to GIFT City benefit India?
It brings a critical piece of India risk discovery onto an India-linked venue, tightens oversight, and keeps more of the market’s economics and data within India’s ecosystem while retaining global investor access through SGX.
Are the contracts in GIFT Nifty the same as SGX Nifty?
GIFT Nifty still follows the NIFTY 50 index, with USD settlement and global access. What changed is the setup: orders are now matched at NSE IX, while SGX handles the backend for its members. Timings also shifted to two long sessions aligned to India’s time zone.
What should investors do with the change from SGX Nifty to GIFT Nifty?
Investors may update their watchlists and morning updates to GIFT Nifty. For pre-market planning, they may pay attention to the closing part of Session II, to get clues about how India’s market may open. If you trade or hedge, you may confirm Connect access with your broker and review the contract specifications carefully before making any investment decisions.
Which global market impacts the Indian market?
In practice, US equities and interest rates tend to dominate the overnight tone of the Indian market, followed by Europe’s opening moves and major Asian markets. That’s why the US market’s last hour of trading and the hand-off into Asia show up first in GIFT Nifty and then in India’s 9:15 AM open.
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This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.
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